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Why the Unraveling Will Accelerate
Why the Unraveling Will Accelerate Sclerotic, hidebound institutions optimized for linear stability and permanent growth are simply not designed to adapt to non-linear change and disruption of permanent growth. Since the first news of pandemic in late January, I’ve been discussing potential accelerants to the unraveling of our fragile financial system: second-order effects (initial travel restrictions and layoffs were first-order […]
US Facing Mounting Debt Amid Global Pandemic – ABC
US Facing Mounting Debt Amid Global Pandemic – ABC Good interview with Professor Barry Eichengreen of UC Berkeley, a good friend of GMM, and odds on favorite to be a Nobel laureate one day. We agree with him that now is not the time to worry about the public debt as we are already down this rabbit hole and […]
The Numbers Tell Us That The ‘Economic Recovery’ Is Dead And Businesses Are Failing At A Staggering Pace
The Numbers Tell Us That The ‘Economic Recovery’ Is Dead And Businesses Are Failing At A Staggering Pace Even though economic conditions were absolutely awful, during the month of June the mainstream media kept insisting that the U.S. economy was “recovering” and the stock market kept surging on every hint of good news. But now […]
Media Continues to Misreport Unemployment: 31.8 Million People on State & Federal Unemployment Insurance. Week 18 of U.S. Labor Market Collapse
Media Continues to Misreport Unemployment: 31.8 Million People on State & Federal Unemployment Insurance. Week 18 of U.S. Labor Market Collapse I get tired of reporters or bots who don’t read beyond the 2nd paragraph of Labor Department press releases. 2.35 million initial state and federal unemployment claims. PUA claims (gig workers) now 41% of […]
Shortage of $50 Canadian Bills?
Shortage of $50 Canadian Bills? A reader sent in this photo that was posted at the head office branch of Bank of Montreal in Vancouver, which is one of the largest banks in Canada. This is a trend that is beginning to appear around the world. However, central banks are using the virus as an […]
More Than Half of Business Closures are Permanent
More Than Half of Business Closures are Permanent A Yelp study finds that 55% of business closures are closed for good. Yelp reports Increased Consumer Interest in May correlates with more Covid outbreaks and closures in June and July. Consumer Interest vs Outbreaks Business Closures Fluctuate Across the Nation There were 140,000 total businesses closures on […]
Super Bull
Super Bull You know where I stand: Markets have been bloated to high heaven via unlimited and unprecedented liquidity injections creating the illusion of a bull market when there is none. Yes indices such as $SPX and $NDX show incredible strength driven by a few single stocks, but as we discussed the rest of the […]
Introducing the “Everything Bubble” Sentiment-o-Meter
Introducing the “Everything Bubble” Sentiment-o-Meter Since human wetware remains stuck in OS1.01, we can predict a remarkable reversal. The “Everything Bubble” has been a sight to behold. With central banks providing trillions to the big players and margin debt enabling small punters to leverage up, the hot money rotation has been a real merry-go-round as one asset and […]
Blain’s Morning Porridge, July 23 2020: This time it’s different?
Blain’s Morning Porridge, July 23 2020: This time it’s different? “Bubbles are far more dangerous when they are fuelled by debt” “This time it’s different”, is one of the most dangerous beliefs in financial markets. This time, things are different – but for a reason. Global Central Banks have pumped liquidity into the financial system […]
Federal Reserve IR Policy – Longer, Lower, and ZIRP Until Something (or Everything) Breaks
Federal Reserve IR Policy – Longer, Lower, and ZIRP Until Something (or Everything) Breaks The current interest rate cycle began in August of 2019 when the Fed cut rates from the previous cycle high of 2.4% to 2.1%. The Fed was then fighting the “repo-crisis” in which the Fed was incapable of setting interest rates…and […]
UPDATE: Silver Breaks Out Above $21, What’s Next For Investors?
UPDATE: Silver Breaks Out Above $21, What’s Next For Investors? The long-awaiting day has finally arrived. After five long years, silver has finally reached its previous high of $21 set back in 2016. So, now that the silver price has reached and broken through the $21 level, what’s next for investors? Before I show the […]
“Demand to Remain Suppressed” till Vaccine/Treatment Widely Available: United Airlines. May Not Happen till Late 2021 “or Even Later”: Health Care Leaders
“Demand to Remain Suppressed” till Vaccine/Treatment Widely Available: United Airlines. May Not Happen till Late 2021 “or Even Later”: Health Care Leaders Flattened-out fish-hook-shaped recovery of demand? Passenger revenues collapsed by 94% to just $681 million, United Airlines disclosed in its Q2 earnings report today. Other operating revenues plunged by 37% to $392 million, but cargo was […]
Wait, why is The Fed buying my biggest competitors’ bonds?
Wait, why is The Fed buying my biggest competitors’ bonds? On Cantillionaires, Sycophants and Losers “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning” — Henry Ford “The ultimate crisis will occur when […]
Inflation
Inflation Remember all those “green shoots?” That was the ubiquitous phrase used by White House officials and TV talking heads in 2009 to describe how the U.S. economy was coming back to life after the 2008 global financial crisis. The problem was we did not get green shoots, we got more like brown weeds. The […]
Never Before Has So Much Stimulus Been Injected In The Economy In A Single Quarter
Never Before Has So Much Stimulus Been Injected In The Economy In A Single Quarter Pandemic-Driven Recession Is Not Over Back-to-back strong monthly gains in retail sales in May and June and a powerful rebound in the equity markets in Q2 create the impression the recession is over. But the recessionary environment is only delayed, […]
